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Secrets of Next-Door Millionaires

Below is a list of some of my favorite money/personal finance articles from this past week. I’ve sifted through boat loads of articles on money, retirement, personal fiance, budgeting, building wealth, paying off debt, and buying a home.

All of the below articles are highly relevant to the Millennial generation (Gen Y) and their money. Knowledge is power, and you are your single greatest investment, so continue to educate yourself on money and personal finances right here on this very blog so you can one day become financially independent.

This week’s best articles on money and personal finances, specifically for Millennials

Secrets of Next-Door Millionaires

Next-door millionaires weren’t born into wealth. They haven’t invented killer apps or won the lottery, exercised a pile of stock options or played professional sports. They’re the majority of millionaires, and they include teachers, small business owners and professionals who accumulate wealth gradually over time. They’re often in their 50s or 60s before their net worth ticks over to seven digits. (NerdWallet)

We all like to think we’re rational when handling money, but there’s ample evidence that suggests otherwise. We struggle to save enough. We become unnerved when the stock market goes down. We think we can outperform the market averages. We buy possessions not just for their utility, but also because of how they make us feel and what statement they make about us to the rest of the world. This maelstrom of greed and fear leads us to spend too much, earn lackluster investment results, and end up with an unnecessarily messy financial life. (Vanguard)

3 Things a Personal Finance Class Can’t Teach You

Personal finance classes are a great idea for consumers, especially youthful ones, who need to understand investing basics or credit management. However, the grasp of basic concepts that revolve around dollars and cents is not necessarily a guaranteed path to fiscal sense. Human nature can often derail the best of intentions aimed at achieving a perfect credit score or building a substantial retirement nest egg. There are some things that a personal finance class teaches, and there are others that typically need to be culled from is experience. (Investopedia)

Make Six Figures? There’s a Decent Chance You’ve Got Almost Nothing in the Bank

It’s hard to feel sorry for someone making six figures, but a new survey attempts to drum up some sympathy for the deflated bank accounts of these high rollers. Close to half of those who earn from $100,000 to $149,999 a year have less than $1,000 in their savings accounts. Some 18 percent of them have socked away absolutely nothing. (Bloomberg)

How to Save for College Without Sacrificing Retirement

Should we save for college or for retirement? And while any financial planner would say that the right choice is crystal clear — retirement is the priority, because there are student loans and other sources of funding for college — it feels at odds with the instinct to put your kid first. (NerdWallet)

Enemies of investment success

Intuitively, we believe we get better products and services when we pay more for them. This perception may be accurate in most facets of life, but the relationship breaks down when it comes to investing. In fact, lower-cost investment funds consistently outperform higher-cost alternatives.¹ The former leave more money in our portfolios, to grow when financial markets gain value. (Vanguard)